Most often, allocation models are implemented for service costs: Logistics, Marketing, Sales and Administration, which consider the expected pull of resources on supporting activities.
Allocation models are most often built as an extension of budget solutions, as there are significant synergies in data and most often the tools have supportive functionality.
The right profitability model from twoday kapacity ensures:
Allocation models can start relatively simple but are often further developed into more advanced models, which not only allow for the analysis of historical results but the models can also be used for making predictions.
Often, projects start with an initial clarification workshop that aims to uncover ambitions, as well as what costs need to be allocated and which drivers are relevant to the development of the costs. Whether the cost depends on the full or partial volume or is fixed may also be relevant to the development of an efficient model.
Next, it is clarified where and how activity data can be collected efficiently.
A profitability model must be an integral part of the decision-making process and follow-up on business initiatives.
An important success criterion for profitability is reporting to decision-makers, where a focus on clarity and transparent allocations is necessary. Therefore, exporting to the Business Intelligence solution is often an important part, as the solution thereby becomes part of decisions such as pricing, associated services, and various efficiency measures.
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